Avatar setting in User Profile

We are using an Enterprise account with SSO via SCIM. Our users are having difficulty setting their User Icons. Upon logging in their only option is to upload a profile pic. No option is presented to set just their initials. The “Change avatar them” option is not available to them. A workaround that seems to work is to temporarily upload a file using ‘Upload profile picture’ and then remove it. At that point, their user icon changes to their initials and the ‘Change avatar them’ is then available to them. They can then use it to select the background color for their initials.

While this is a relatively minor issue, it is very inconvenient for our account as until they get something set the user icons across the full organization look exactly the same. The initials option/‘Change avatar theme’ not being available without this work around seems to be a bug.